Revitalized Bulls Take Charge of the Market, Pushing Nifty Beyond the 20,000 Milestone

At the close, the Nifty 50 was at 20,070.00 up by 0.38%

Amidst a backdrop of global economic challenges, Indian equity markets showcased resilience and strength. At the start of the trading day, the NSE Nifty 50 began on a lower note, but as the day unfolded, it witnessed a noteworthy upswing of 0.38 percent, ultimately closing in the green.

The initial dip in the Indian equity markets was in line with the mixed performance observed in Asian markets and a recent decline in the US markets. However, mid-session buying activity proved to be a game-changer, leading to a positive turnaround. Notably, the Nifty index closed above the psychologically significant 20,000 mark.

Global market dynamics have been marked by uncertainty, driven by the contraction of the UK economy and the upward trajectory of oil prices. Additionally, investors worldwide have been eagerly anticipating the release of US inflation data, which holds paramount global significance as it provides valuable insights into the Federal Reserve’s policy outlook.

Despite these external challenges, domestic indices in India have managed to resume their upward trajectory. This resilience can be attributed to the recent dip in domestic Consumer Price Index (CPI) inflation to 6.83% in August, coupled with positive industrial production data. These domestic factors have reaffirmed the strength and robustness of the Indian economy, demonstrating its ability to weather global economic turbulence.

Bank Nifty: Up by 0.87%

In a surprising turn of events, both the Bank Nifty and the BSE Sensex displayed resilience and strength in the financial markets. Initially opening in the red, the Bank Nifty saw a remarkable upswing, surging by 0.87 percent and ultimately closing in the green at a notable level of 45,909.45. Similarly, the BSE Sensex, after starting on a negative note, posted a commendable gain of 0.37 percent, closing in the green at a high of 67,466.99.

Sectorial performance reveals interesting trends. Media emerged as a notable gainer, surging by 1.53 percent. Within this sector, TV18 Broadcast Ltd. stood out with an impressive gain of 3.97 percent, closely followed by Network18 Media & Investments Ltd. with a gain of 3.87 percent.

On the flip side, the Auto sector experienced a decline, registering a loss of 0.46 percent. Notably, Tube Investments Of India Ltd. faced a significant setback, with a loss of -3.27 percent, while Sona Blw Precision Forgings Ltd. also saw a decline of -2.51 percent.

 FII/FPI (Foreign Institutional Investors/Foreign Portfolio Investors) have displayed a noteworthy transactional activity. The buy value recorded stands at an impressive 10,375.25 crore rupees, while the sale value reached an even more remarkable 12,006.88 crore rupees. However, it is important to note that the net value reflects a negative figure of -1,631.63 crore rupees.

On the other hand, the DII (Domestic Institutional Investors) have also made their presence felt in the market. Their buy value amounted to 8,104.69 crore rupees, while the sale value stood at 7,254.83 crore rupees. Consequently, the net value for the DII reveals a positive figure of 849.86 crore rupees.

Bank Nifty

The Nifty Banking sector had some gainers and some losers for the day.

The gainers included Punjab National Bank with a 8.53% increase, Bank of Baroda with a 4.33% increase, IndusInd Bank with a 1.88% increase, Federal Bank with a 1.75% increase, and Axis Bank with a 1.58% increase. On the other hand, the biggest losers in the sector included IDFC First Bank with a 0.11% decline, and ICICI Bank with a 0.06% decline. These results suggest that some banking stocks performed better for the day.

Buzz

On Wednesday, the rupee closed at 82.97 (pro) against the US dollar, losing 2 paise from its previous close. The rise in crude oil prices and the strength of the US dollar overseas put pressure on the local unit. However, the rupee was supported by the positive domestic markets and the encouraging macroeconomic data from India. The rupee opened at 82.92 and traded between 82.89 and 82.99 in the interbank foreign exchange market.

The local unit lost 2 paise and settled at 82.97 (pro) against the US dollar on Wednesday. The crude oil prices surged and the US dollar strengthened overseas, which weighed on the rupee. However, the downside for the rupee was limited by the upbeat domestic markets and the macroeconomic data from India. The rupee started at 82.92 and moved in a range of 82.89 and 82.99 in the interbank foreign exchange market.

Buzzing

The share price of Grasim Industries Ltd. has experienced a notable increase of 3.13% compared to its previous closing value of Rs 1,870.95. Currently, the stock of Grasim Industries Ltd. is being traded at a price of 1,929.50. It is worth mentioning that over the past 18 years, only 1.04% of trading sessions have witnessed intraday gains surpassing 5%.

On the other hand, the share price of HDFC Life Insurance Company Ltd. has witnessed a decline of -1.47% from its previous closing value of Rs 660.95. Presently, the stock of HDFC Life Insurance Company Ltd. is being traded at a price of 651.25. It is noteworthy that over the past 5 years, only 0.69% of trading sessions have experienced intraday declines exceeding 5%.

Advance Decline Ratio

Today, the advance-decline ratio was 1.71, and the market breadth was positive. The volatility index India Vix increased by 1.17 percent to settle at 11.83 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1504
Decliners – 881
52Wk High –  61
52Wk Low – 13
High Band Hitters – 64
Low Band Hitters – 89
200d SMA – 18433
50d SMA – 19560
20d SMA – 19528

Top Gainers and Losers Stocks

The top gainers were Coal India (+3.21%), Grasim (+3.13%), Tata Consumer (+2.92%), Bharti Airtel (+2.76%), and Titan (+2.36%).

The top losers were HDFC Life (-1.47%), M&M (-1.37%), Adani Ports (-1.33%), Larsen & Toubro (-1.09%), and Cipla (-1.04%).

Top Gainers and Losers Sector

The top gainers sectors were Media (+1.53%), Oil & Gas (+0.96%), Pharma (+0.78%), Realty (+0.68%), and Consumer Durables (+0.59%).

The top losers sectors were Auto (-0.46%), IT (-0.28%).

The Nifty Midcap 50 was up by 0.60 percent, while the Nifty Small Cap 50 was up by 0.50 percent on the day.

The Nifty Midcap 50 index currently closed at 11,454.95, while the Nifty Small Cap 50 index currently closed at 5,767.95.

SECTORS – NOTABLE ACTION
MEDIA +1.53%
OIL & GAS +0.96%
PHARMA +0.78%
AUTO -0.46%
IT -0.28%

Stocks Ban List

(SEBI) F&O ban list  (NATIONALUM open at -95.40 and close at +97.20), (IEX open at -132.65 and close at +134.35), (IBULHSGFIN open at -169.00 and close at +188.35), (MANAPPURAM open at -138.35 and close at +139.85), (INDIACEM open at -235.50 and close at +247.25), (DELTACORP open at -178.05 and close at +179.00), (HINDCOPPER open at -155.90 and close at +158.50), (SAIL open at -94.45 and close at +96.00), (BHEL open at -126.95 and close at +128.80), and (CHAMBLFERT open at -278.00 and close at +284.45) are not currently on the stock exchange.

A stock enters the Ban List if its MWPL is above 95%. Implying that, Ban List shows the Futures and Options (FnO ) stocks whose combined open interest in all FnO contracts for a given period crosses 95% of Market-Wide Position Limit.

RECLTD, NMDC, ZEEL, BALRAMCHIN, IRCTC, CANBK, RBLBANK and GNFC stocks has the possibilities of enterance in the ban list.

DELTACORP, HINDCOPPER, SAIL, BHEL, and CHAMBLFERT stocks has the possibilities of exit from ban list.

Daily Pivots

As per the above pivots data, 19970 to 20140 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Volatility Persists as Nifty Hovers Around 20,000-Mark
Nifty Hits 20K Milestone in 7-Day Stock Rally
Nifty Opens Gap Up, Records Sixth Consecutive Gains

This article is only for educational purposes and is not an investment advice.